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Export, R&D and New Products. A Model and a Test on European Industries

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  • Dario Guarascio

    () (Sapienza University of Rome)

  • Mario Pianta

    () (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo")

  • Francesco Bogliacino

    () (Universidad Nacional de Colombia)

Abstract

In this article we extend the model developed by Bogliacino and Pianta (2013a, 2013b) on the link between R&D, innovation and economic performance, considering the impact of innovation of export success. We develop a simultaneous three equation model in order to investigate the existence of a ‘virtuous circle’ between industries’ R&D, share of product innovators and export market shares. We investigate empirically – at the industry level – three key relationships affecting the dynamics of innovation and export performance: first, the capacity of firms to translate their R&D efforts in new products; second, the role of innovation as a determinant of export market shares; third, the export success as a driver of new R&D efforts. The model is tested for 38 manufacturing and service sectors of six European countries over three time periods from 1995 to 2010. The model effectively accounts for the dynamics of R&D efforts, innovation and international performances of European industries. Moreover, important differences across countries emerge when we split our sample in a Northern group – Germany, the Netherlands and the United Kingdom – and a Southern group – France, Italy and Spain. We find that the ‘virtuous circle’ between innovation and competitiveness holds for Northern economies only, while Southern industries fail to translate innovation efforts into export success.

Suggested Citation

  • Dario Guarascio & Mario Pianta & Francesco Bogliacino, 2014. "Export, R&D and New Products. A Model and a Test on European Industries," Working Papers 1407, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2014.
  • Handle: RePEc:urb:wpaper:14_07
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    Cited by:

    1. Nascia, Leopoldo & Pianta, Mario, 2018. "Research and innovation policy in Italy," MPRA Paper 89510, University Library of Munich, Germany.
    2. repec:ebl:ecbull:eb-18-00112 is not listed on IDEAS
    3. Francesco Bogliacino & Dario Guarascio & Valeria Cirillo, 2015. "Where Does the Surplus Go? Disentangling the Capital-Labor Distributive Conflict," Documentos de Trabajo - Escuela de Economía 013535, Universidad Nacional de Colombia -FCE - CID.
    4. Francesco Bogliacino & Matteo Lucchese & Leopoldo Nascia & Mario Pianta, 2015. "The virtuous circle of innovation in Italian firms," Working Papers 1504, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2015.
    5. Armanda Cetrulo & Valeria Cirillo & Dario Guarascio, 2018. "Weaker jobs, weaker innovation. Exploring the temporary employment-product innovation nexus," LEM Papers Series 2018/06, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    6. Dario Guarascio & Mario Pianta & Matteo Lucchese & Francesco Bogliacino, 2015. "Business cycles, technology and exports," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 32(2), pages 167-200, August.
    7. Raffaele Brancati & Emanuela Marrocu & Manuel Romagnoli & Stefano Usai, 2018. "Innovation activities and learning processes in the crisis: evidence from Italian export in manufacturing and services," Industrial and Corporate Change, Oxford University Press, vol. 27(1), pages 107-130.
    8. Valeria Costantini & Francesco Crespi & Elena Paglialunga & Giorgia Sforna, 2018. "System Transition and Structural Change Processes in the Energy Efficiency of Residential Sector: Evidence from EU Countries," SPRU Working Paper Series 2018-03, SPRU - Science Policy Research Unit, University of Sussex Business School.
    9. Francesco Bogliacino & Dario Guarascio & Valeria Cirillo, 2018. "The dynamics of profits and wages: technology, offshoring and demand," Industry and Innovation, Taylor & Francis Journals, vol. 25(8), pages 778-808, September.
    10. Francesco Crespi & Dario Guarascio, 2017. "The demand-pull effect of public procurement on innovation and industrial renewal," LEM Papers Series 2017/20, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    11. Emanuele Brancati & Raffaele Brancati & Dario Guarascio & Andrea Maresca & Manuel Romagnoli & Antonello Zanfei, 2018. "Firm-level Drivers of Export Performance and External Competitiveness in Italy," European Economy - Discussion Papers 2015 - 087, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    12. Valeria Cirillo & Mario Pianta & Leopoldo Nascia, 2015. "The Dynamics of Skills: Technology and Business Cycles," LEM Papers Series 2015/30, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    13. repec:gam:jsusta:v:10:y:2018:i:2:p:463-:d:131183 is not listed on IDEAS

    More about this item

    Keywords

    Export; R&D; Innovation; Three Stages Least Squares; Europe;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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